how much tax you have to pay for gratuity amount received in india?



i have just turned sixty and have received gratuity amount from my employer of thirty years.the employer is a public sector in india.
how much tax to pay .

how much tax you have to pay for gratuity amount received in india?
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3 Replies to “how much tax you have to pay for gratuity amount received in india?”


  1. As per the formula under the Act, gratuity up to Rs 350,000 is exempt from taxes.
    However, for government employees any amount is non-taxable.


  2. Public Sector Employee not treated as Govt. Employee hence Gratuity receivbed as per Paynent of Gratuity Act, 1972 will be Tax Free subject to maximum of Rs. 3,50,000/-.

    As per Paynent of Gratuity Act, 1972 the Gratuity is: For every copleted year of Service or part thereof in excess of six month based on the rate of wages last draw by the employee concerned U/s 4(2) is 15days’ wages of a year. 15 days wages calculating on the basis of 26 working days in a month. In your Case: 15*30* last paid Salary/26.





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